{"id":36811,"date":"2024-08-28T11:22:41","date_gmt":"2024-08-28T11:22:41","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/maker-now-sky-faces-backlash-over-usds-stablecoins-freeze-function\/"},"modified":"2024-08-28T11:22:41","modified_gmt":"2024-08-28T11:22:41","slug":"maker-now-sky-faces-backlash-over-usds-stablecoins-freeze-function","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/maker-now-sky-faces-backlash-over-usds-stablecoins-freeze-function\/","title":{"rendered":"Maker, now Sky, faces backlash over USDS stablecoin&#8217;s freeze function"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1675967641695-580de5e7-6325-4b85-8825-883ee428b50a-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1675967641695-580de5e7-6325-4b85-8825-883ee428b50a-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1675967641695-580de5e7-6325-4b85-8825-883ee428b50a-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1675967641695-580de5e7-6325-4b85-8825-883ee428b50a-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>Sky\u2019s USDS stablecoin has a freeze function, raising decentralization concerns.<\/li>\n<li>Rune Christensen, Sky\u2019s co-founder, says the freeze function won\u2019t be active at launch.<\/li>\n<li>Sky\u2019s website is blocking VPNs further adding to the criticism following the rebrand.<\/li>\n<\/ul>\n<p>A day after the decentralized finance (DeFi) project <a href=\"https:\/\/coinjournal.net\/news\/maker-protocol-rebrands-to-sky-dai-stablecoin-rebranded-to-usds\/\">Maker rebranded to Sky<\/a>, the new protocol is under intense scrutiny over a freeze function in its upgraded stablecoin, USDS.<\/p>\n<p>Critics argue that the new stablecoin\u2019s \u201cfreeze function,\u201d which allows the issuer to freeze transactions, could undermine the project\u2019s commitment to decentralization. The backlash has been significant, especially given Sky\u2019s recent rebranding and controversial website changes.<\/p>\n<p>Co-founder Rune Christensen has responded to the concerns, aiming to clarify the project\u2019s stance.<\/p>\n<h2>Concerns over the decentralization of Maker, now Sky<\/h2>\n<p>Some community members believe the USDS \u201cfreeze function\u201d conflicts with the core principles of decentralization.<\/p>\n<p>An X user expressed concern that such a feature could fundamentally \u201cdefeat the purpose of the project.\u201d<\/p>\n<p>The freeze function, which could potentially allow transactions to be halted under certain conditions, has raised questions about how well it aligns with decentralized ideals.<\/p>\n<h2>Co-founder of Sky addresses the freeze function concerns<\/h2>\n<p>However, Rune Christensen, co-founder of Sky, has addressed these concerns in a recent X post, clarifying that the freeze function will not be active at the launch of USDS. Instead, the stablecoin will initially include an upgrade capability that may allow future governance decisions to determine whether and how to implement this feature.<\/p>\n<p>Christensen emphasized that any such decision would be carefully considered, weighing risk factors to maintain the system\u2019s integrity.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Actually there will be no freeze function at launch, there will just be an upgrade ability. So later governance can decide how to implement something like a freeze function based on considering all data and find something that protects against as many risk factors as possible<\/p>\n<p>\u2014 Rune (@RuneKek) <a href=\"https:\/\/twitter.com\/RuneKek\/status\/1828463426085027945?ref_src=twsrc%5Etfw\">August 27, 2024<\/a><\/p>\n<\/blockquote>\n<p>Christensen further explained that if activated, the freeze function would adhere to legal frameworks in jurisdictions where Sky operates. This approach aims to ensure a higher level of legal certainty for real-world asset (RWA) collateral backing USDS.<\/p>\n<p>Adam Cochran from Cinneamhain Ventures supports this perspective, suggesting that a freeze function is necessary for securing backing from US Treasury securities and integrating with traditional finance systems.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">The reality is, if you want T-bill yield backing, even by secondary treasury deals, you&#8217;re going to have a freeze function, and a VPN jurisdiction blocker.<\/p>\n<p>A trade off this industry needs to decide on, because you can&#8217;t reap the benefits of the US tradfi system without its rule\u2026 <a href=\"https:\/\/t.co\/oeLWJmmuAZ\">https:\/\/t.co\/oeLWJmmuAZ<\/a><\/p>\n<p>\u2014 Adam Cochran (adamscochran.eth) (@adamscochran) <a href=\"https:\/\/twitter.com\/adamscochran\/status\/1828434403611287738?ref_src=twsrc%5Etfw\">August 27, 2024<\/a><\/p>\n<\/blockquote>\n<h2>Sky website blocking VPN access<\/h2>\n<p>Besides the \u201cfreeze function,\u201d the rebranding of Maker to Sky, along with the transformation of its Dai stablecoin to USDS, has also been met with criticism due to the project\u2019s website blocking VPN access.<\/p>\n<p>Despite these issues, Christensen has assured users that the original Dai stablecoin remains unchanged and usable, with USDS incorporating the freeze function as part of Sky\u2019s \u201cEndgame\u201d roadmap.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/coinjournal.net\/news\/maker-now-sky-faces-backlash-over-usds-stablecoins-freeze-function\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Sky\u2019s USDS stablecoin has a freeze function, raising decentralization concerns. Rune Christensen, Sky\u2019s co-founder, says the freeze function won\u2019t be active at launch. Sky\u2019s website is blocking VPNs further adding to the criticism following the rebrand. A day after the decentralized [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":36812,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/36811"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=36811"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/36811\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/36812"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=36811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=36811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=36811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}